Ethereum – Sideways or New Falling?
Ethereum / Dollar BITSTAMP:ETHUSD
I made a review already for ETH market and you can read the details in the post from the related ideas. The main message is – in the long run, the market looks bullish and now it’s time for correction.
If we look at the 4H timeframe, we can see that after strange movements the price dropped to SMA100 as one of the support lines. The price moves at this line, and it looks like the market will be able to break this line. If so, we have to think about possible movements and try to get possible trading opportunities.
As I wrote above, the market is bullish and we work with the correction movement. It means that the market keeps the potential to move lower to the main uptrend line. This zone and reversal signals will be good for buying and holding in the long run. For confirmation of the downward movement, the price will have to break the local support zone and drop below 130.00 level. DMI is bearish , and ADX moves upward above the signal level. It tells us that the bears become stronger.
Alternative variant – the market can correct the upward movement not in the opposite movement like the downward, but also in the sideways. In such way the price will continue movements between 150.00 and 130.00 levels until the market will get solid reasons to leave this price channel .
For confirmation the upward movement and the main uptrend, the price will have to move above the resistance zone formed by 150.00 and 160.00 levels.
The market does not look interesting now for active trading. The price is far from the zones which can generate good trading opportunity. The best deal now – to wait for reliable setups.
If you are a long term investor, of course, it’s possible to open long positions from the current levels, as they look pretty good.
Source: TW DLavrov